... larger amounts of other product must be given up. If a change in demand from consumers shows that more wines need to be produced (a movement along B to C) - there may not be the economic resources available to maintain the output of wines. In this example, some factors of production are suited to producing both wine and grain, but as the production of one of these commodities increases, resources better suited to production of the other must be diverted. For instance, refer to the movement along C to B, the increase of producing of wines of 3000 tons costs a decrease in grains product of 6000 tons. Experienced wine producers are not necessarily efficient grain producers, and grain producers are not necessarily efficient wine producers, so the opportunity cost increases as one moves toward either extreme on the curve of production possibilities. Draw production possibility curve for the ...

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